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1961 (1) TMI 6 - SC - Income TaxWhether on the facts and circumstances of this case ₹ 72,963-12-0 was a revenue expenditure deductible under section 10(2)(iii) or under section 10(2)(xv) of the Indian Income-tax Act ? Whether on the facts and circumstances of this case ₹ 76,526-1-3 was a revenue expenditure deductible under section 10(2)(iii) or under section 10(2)(xv) of the Indian Income-tax Act ? Held that:- On the facts proved in the present case the trust agreed to finance the business of the appellant on the terms set out in the agreement and there is nothing to show that he could have made any better arrangements or would not have lost the contract if he had failed to enter into the agreement, i.e., the agreement to pay the amounts in dispute. Therefore, in a, commercial sense, the payments were an expenditure wholly and exclusively laid out for the purpose of the business. Therefore, the High Court was in error and the question referred should have been answered in the affirmative in favour of the appellant. Appeal allowed.
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